New Oriental is the largest private education franchise in China. The story in the annual report is no longer about survival after the 2021 Double Down rule that banned for-profit K-12 academic tutoring. The company spent three years rebuilding around adult test preparation, non-academic children's courses, smart learning devices, and a livestreaming grocery business, and the annual print shows the rebuild is now compounding. Revenue grew to $5.66 billion in the year, and non-GAAP operating margin expanded meaningfully to 13.0%.
The underlying dynamic is a shift from a single declining cash cow to a portfolio where the education core is accelerating. The company guides next-year revenue growth of 14% to 18%. Management has paired that guide with a $200 million buyback and a roughly $300 million dividend, funded from a substantial cash balance.
The fourth quarter delivered revenue of $1.53 billion, up 23.0% year over year, with solid non-GAAP operating income despite a one-time internal restructuring charge. Deferred revenue, the forward indicator of course fees collected, rose 14.8% to $2.24 billion. The question is whether the education mix shift, plus East Buy, can sustain that guide without another regulatory reset.